On Tuesday The Seimas after consideration, the bill on the rounding of cash payments was approved, which resolves the issue of the refusal of 1 and 2 euro cent coins when paying in cash - it is proposed to round the final amount of the basket of goods and services.
61 MPs voted "for" the draft law at the consideration stage, 29 abstained, and 16 "against".
Andrius Bagdonas, a member of the Liberal Movement faction, who spoke "for" the project, explained that if the proposal was approved, low-value cent coins would be got rid of.
"Passing the rounding bill would get rid of the low-value but resource-intensive €1 and €2 cent coins. Our everyday life would become slightly easier, we would no longer have to dig out of our wallets or pockets for pennies, which we often lose," said A. Bagdon in the plenary session hall of the Seimas.
At that time, the parliamentarian Remigijus Žemaitaitis, who did not support the draft law, urged to wait for the European Union's unanimous decision on the rounding of cents.
"I would suggest not to support this project until there is a unified decision in the EU. If Poland, Latvija does not have this solution, so why does Lithuania need it? You still drive around, you will have a denomination of 1, 2 cents and you will have nowhere to put it," said R. Žemaitaitis.
In the draft law, it is proposed to establish that when a natural and legal person pays an economic entity for goods in cash, the final amount calculated for goods purchased at the same time is rounded up to the nearest multiple of 5.
In July, in order to implement these changes, a draft supplement to the Law on the introduction of the Euro was submitted, but the Law Department of the Seimas recommended submitting a separate law.
The final calculated amount ending in 1 or 2 euro ct is expected to be rounded down to 0, and an amount ending in 3 or 4 euro ct is expected to be rounded up to 5. Whereas an amount ending in 6 or 7 euro ct would be rounded down to 5 and the final calculated amount ending in 8 or 9 euro ct would be rounded up to 10.
It is stated that rounding would not apply to: payments in non-cash, gift vouchers (cheques, cards), money accumulated in loyalty cards, social cards; for electronic marketplace services; wages and other employment-related benefits, including per diems and allowances intended to compensate for actual travel, lodging and meal expenses related to the secondment; for pensions and other social security benefits (even if paid in cash).
Also, rounding is not intended to be applied to taxes, tax-related amounts, fees, fines and other monetary obligations that are assigned or determined in accordance with the Code of Administrative Offenses and other laws; for currency exchange; for cash transfers; for depositing cash into a payment account and withdrawing cash from a payment account; when the total amount to be paid for simultaneously returned goods, purchased or sold goods (services) is less than 5 euro cents, except for the specified cases.
After rounding is introduced, 1 and 2 euro ct coins would remain a legal means of payment, i.e. they will continue to be able to be used for payment at trading points or exchanged for coins or banknotes of a larger denomination at the cash desks of the Bank of Lithuania or branches of commercial banks.
It is proposed to combine the start of the application of rounding with the deadlines for the introduction of smart cash registers and set 2025 accordingly. on May 1, when all cash registers will be adapted to the new smart requirements.
It is claimed that if the bills are approved, there will be no need to return the 1 and 2 euro ct coins, so they will no longer need to be minted and put into circulation. As a result, according to an expert assessment, in the long term, about 3,7 million could be saved annually. The cash cycle of residents, business and state funds, and euros will be more sustainable and efficient.
Ignas Dobrovolskas (ELTA)
